Gold technical analysis
Gold is down $13 today in the worst decline since August 5.
In the medium-term, the outlook is largely unchanged. Gold appears to be in a consolidation phase after a great run to start the year. Uncertainty about global central bank dovishness has stalled the move.
But in the short-term, there is reason to expect more downside. The 55-day moving average has broken and assume we close below it, that will be the first close under it since early June.
The break of the August low is also negative and points to a likely test of the July low of $1311.
On the fundamental side, we await Yellen.
Let's assume we don't learn anything particularly new from the Fed Chair, which is the most-probable outcome. The market will take that as a slightly dovish signal so there could be a bit of gold strength and USD weakness there.
But given the downward momentum in gold, I'm inclined to think that a bounce will be sold next Monday or Tuesday.
